"We Have A Problem" - Houston Hits Stocks, But Bonds & Bullion Bid

Tyler Durden's picture



Gold was the big gainer on the day with bonds barely green and stocks and the dollar lower...


And remains the big winner YTD...


The Dow ended the day red, but ranges were very narrow...Because nothing says buy small cap (domestic) stocks like an unprecedented crisis in Texas...


FANG Stocks closed higher but gave back their early short-squeeze gains...


S&P remains below its 50DMA...


But VIX was hammered lower to ensure a green S&P close...


Tech outperformed (and Utes closed green) as Retailers, Energy, and Financials dropped early and never bounced...


Meanwhile, Speculators have never been more net long Dow futures...

Notably VIX short positioning was reduced (less short) and aggregate bond futures positioning remains near its longest since 2013 (and aggregate FX futures positioning is near the most USD short since 2013).

Aside from the long-end, Treasury yields fell modestly on the day (belly outperforming the tails)...(NOTE: UK Bank Holiday today)

10Y Yields dropped to 2.15% - lowest since Draghi's June hawish comments.


The Dollar Index drifted lower during the US session (extending the Yellen/Draghi losses from Friday) after trading in a very narrow range overnight...


The Dollar Index fell below otys 200-week average for the first time since 2014..


Gold futures settled above $1300 for the first time since Nov 2016...


To the highest close for front-month futures since Sept... (biggest day for Gold in over 3 months)


Silver also blew through $17 convincingly, closing above its 200DMA for the first time since April...


While gold had a big day, the copper/gold ratio remains notably decoupled from bonds... Gold up more? Bond prices down? Copper crumble?


Finally, of course, the big news today was the swings in the energy complex. While RBOB Gasoline spiked at last night's open, its drifted lower all day and WTI tumbled to one-month lows...


There could be some relief as the WTI-RBOB Crack leaked lower into the close...

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BlueHorseShoeLovesDT's picture

Yada yada yada, don't you know all this shit amounts to nada

Shitonya Serfs's picture

True...looks like normal Houston humidity to me.

The Cooler King's picture

Just B-B-B_buy Bitcoins... It'll help all H-H-H-Houstons problems



Because as mosely says


"They won't be "ENJOYING THIER POVERTY"... Instead ~ They'll all be RICH:


- sitting on the tops of their houses that are flooded and don't have INTERNET access

- Hoping for FEMA to arrive

- but 'shopping for a $6k cheap Chinese manufactured ensemble from OVERSTOCK.com' to replace what's down there below as soon as...


as Morgan Freeman put it


"the waters ~ receeded"


I mean ~~~ FFS ~~~ If you don't understand how BITCOIN is gonna SAVE you now, when will it ever will?

BlueHorseShoeLovesDT's picture

I prefer Whopper Coin, but it isn't accepted by clowns.

The Cooler King's picture

I'll gladly give you a WHOPPERCOIN next Wednesday for a NOTHINGBURGER today!


FFS ~ LOOK AT ALL THOSE KAYAKERS up there in the foto!!!


If only those poor dumb bastards had BITCOIN!!!

DWD-MOVIE's picture

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chubbar's picture

Can anyone tell me why every fucking time something happens in any market, it has to be pinned on something unrelated? How the fuck does the author know why gold got bid or why stocks didn't? This shit happens a few times a month and every time these financial gurus need to come out and explain why, when often times it has nothing to do with anything other than the vagaries of investor preferences.

Al Huxley's picture

The filthy little shitbag miners are likely to be the place to be over the next while. 

NoDebt's picture

If you can hold your hand in that flame long enough, anything is possible.


Al Huxley's picture

LOL, gambling's a bad addiction.

Kaiser Sousa's picture

Physical Gold & Silver screaming "tic, toc, mother fuckers..."


ps: still ignore the phony debt coupon dollar prices of the only 2 forms of REALMONEY!

keep stackin'.

ET's picture

Gold and Silver to the rescue.

You can keep them underwater for hundreds of years and they will still hold their value.

jrock's picture

Small caps go up every day and it's pissing me off.

user_name's picture

We could lose half the US to floods and the NASDAQ would still end the day positive.  That pisses me off

Keltner Channel Surf's picture

Well, the Russell 2000 didn’t go up from 9:45 – 10:30, 11 – 12, or 12:15 – 12:45.  The point being that algos automatically constrict their intraday dragonfly saw-toothing ranges when volume is only 66% the already pathetic daily average, so if you’re using anything beyond 5-min charts on days like this, the odds of disappointment are rather high.

On a positive note for RUT bears, we did top out at the ubiquitous Daily 20EMA, the most important of all algo levels, on not only small caps, but also COMP and SPY, so it’s likely some Big Boyz are re-shorting to potentially join small caps at plunging to the 200 DMA.  Of course, that also means that low-volume short-goosers will be in their element pre-Labor Day, so expect the standard late summer skirmish.  Get your popcorn …


D.r. Funk's picture

2 triple-4 looks like it was -aimed-for- again. We've seen 4s come up in different areas the last few months. With less coincidence factor. Everyone wants to hound the person mentioning it but, uh, yeah, the last 45min, drifted PRETTY EVENLY, up, to

jamesmmu's picture
This data has never been published by left stream media all covering for fascist Obama. Are we Venezuela ? The only way to go is up


earleflorida's picture

if it was the flooding in california i'd agree, but there's no gold in houston just black gold refineries and canada will come to the rescue

Countrybunkererd's picture

Correct me if i am wrong, but, isn't Canada's total refining capacity about equal to what was just taken offline in the USA?  Are they going to go without fuel so we can have it?

earleflorida's picture

link please

btw.... trump with carte`blanche for the 'Lone Star' to shine its search-light on the Wall!

Countrybunkererd's picture

Look it up.  I'm not your servant.  Otherwise prove me wrong.

earleflorida's picture

here's a simple wikipedia [scroll to TEXAS], link (note: refineries in TX. will postpone shutting down for the 'Winter *** Blend')

 many friends in beaumont, tx., but flooding prevents himself/ employees crossing bridges to get to refinery today (Ps. Houston soil is clay and not sand--- Bad!!!)


http://www.energytrendsinsider.com/2007/09/14/refining-101-winter-gasoline/     (***)

Countrybunkererd's picture

Baytown and Lake Charles refineries ALONE are 1/2 of Canada's production of roughly 2mmb/d.  We have a week or two before shortages (If production doesn't go back online) but if the storm re-develops and hits Luzianer and takes out more capacity who knows.  But for all I know they will be running full tilt tomorrow!!  If Beaumont is having issues already (as you suggest) and Lake Charles goes down.  Well, WOW.  I no longer have close enough connections to Exxon's Baytown facility or I would ask.

Since you did your part...

I can't link it w/o their crap of wanting paid.  search refinery capacity by country.

earleflorida's picture


Note: Top Toolbar {search Geograhy :: (Int'l)}

latest data and 'Go To Sites'

ZH/TD has so much about energy and geopolitical hotspots...--- it's actually become an invaluable (a religion on ZH) source of data for us old tymers.

 let me know or the board of what you find


earleflorida's picture

friend called said Exxon closed Beaumont!

Stan522's picture

Gold is your disaster recovery mechanism..... In the meantime, we just have the bankster's manipulating it and driving everyone nuts who watch it.....

Father ¢hristmas's picture

Your disaster recovery mechanism is your proximity to whoever ends up controlling access to trade routes.

Stan522's picture

That's where my other precious metals will come in handy.... Lead and brass..... ;-]

Winston Churchill's picture

Yeah but why not today ?

A market being closed has never stopped the algos before running 24/7.

I'd guess that ISDA decision is a lot more than minor and somebody knows it.

A SIFI is about to get a surprise/bailout/bailin.

Stan522's picture

Absolutely, buy it today, but you won't see the true ultimate value until the world crumbles and all we have left of value are things we can trade and precious metals. My point is that these daily fluctuations and manipulations are the bankster's get rich schemes and will be nothing in comparison to when the SHTF......

WorkingPawn's picture

Don't worry, "someone" will drop $2 billion in paper gold on the market in a few seconds in the middle of the night to monkey hammer gold back down. 

The central banks can't let gold go up - it would make them look bad.

Snaffew's picture

gold and silver blew past their 200 dma's...3 days at or above these levels is a confirmed buy all the way.

ReturnOfDaMac's picture

Ok guys, we get it, shut up and stack.

Anteater's picture

Think of the kilotons of silver doubloons under that flood water,

that will have to be dug out of the mud, only to find them turned

a blue-gray and no longer tradeable on the coin bazaars or pawn

shops. You'd get exactly one quart of gas for your silver dollar, lol.

They probably wouldn't even accept it as cash! Looks counterfeit.


Snaffew's picture

pure silver may tarnish a bit, but it won't oxidize or degrade no matter the environment it is in.  

sgorem's picture

"HOUSTON, WE HAVE A PROBLEM!"............yeah, like nobody gives a shit. we can already see our fucking tax dollar$ going down the "drain" by incompetent government bureaucracy, fraudulent claims by uninsured, legitimate Texans & illegal immigrants, business owners, car dealers, INSURANCE COMPANIES. just like new orleans and new joisee, the raping of the tired and withered american taxpayer will once again be upon us as the federal, state, and local governments start their "woe is me" bullshit, and we can sit back and watch our tax dollars going down the fucking "drain".....again. it must be a excruciatingly  good feeling having NO money, but spending other peoples money ad infinitum........... btw. love Texas, but hate houston/dallas/austin.

Squid Viscous's picture

Heaven, Hell, or Houston

- ZZ Top

Haitian Snackout's picture

Why does everyone hate Houston? Well aside from the traffic and sprawl. I thought it had decent nightlife. And I felt safe walking around at night. So the cops must be doing a good job. But then, I guess I feel safe almost anywhere.

Cluster_Frak's picture

Construction rental equipment are doing well thanks to Houston. Check HEES for example.

moorewasthebestbond's picture

The faked moon landings and the faked Apollo 13 crap... what a joke.

buzzsaw99's picture

hurricane sandy left a quarter inch of rain and new york city got $200B but Houston will only get about tree fiddy bitchez and they are under ten fucking feet of water.  this country needs an enema.

Juggernaut x2's picture

Houston is the asshole of the US so I think we just got one.

Barney08's picture

Either gold or the S&P is wrong. Me thinks it's the S&P this time. Hurricane or not.

rbianco3's picture

I went on record about my crypto-liquidation for gold last night while it was still in 1200's.

When gub-mint is forced to pay the bill- gold should get a nice fear bounce.

adr's picture

Of there is a HAARP weather manipulator, they sure used it here. Nothing like a natural disaster to provide cover for shenanigans. 

If GDP goes negative for the first time since 2009, they can blame the storm instead of Fuck St. 

Juggernaut x2's picture

Or it could be that that moist Gulf air and warm gulf water is just a natural conduit for hurricanes- it may seem like there are a lot of "big hurricanes" but when you figure that mankind has been on this earth for a nanosecond in earth's history this stuff is not that big of a deal.

tropicthunder's picture

Gotta hand it to the Bankster-Shyster-JooBoys yet again. How many "disorderly" events have there been in Gold and Silver Futures/LBMA this year with ZERO INQUIRIES FROM THE CFTC or the UK-FSA. No investigations, no fines, no nothing except a well-done, pat on the back for screwing the small spec each and everytime.